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HONG KONG ANNUAL REPORT
Powers, the Colony was again extended, acquiring under a 99-year lease a substantial stretch of mainland north of Kowloon, and a group of islands in the immediate vicinity of Hong Kong. The leased area became known as the New Territories.
The initial British occupation, which took place in 1899, met with some ill-organized armed opposition in the Taipo and Yuen Long areas, but the confidence of the people was quickly established. Sir Henry Blake (Governor 1898-1904) personally identified himself with every aspect of the life of the Colony's new rural population, obtaining improved seed and types of livestock for them; and the relations between Government and the people of the New Territories have ever since been distinguished by the closest confidence and goodwill. Malaria was widespread, and plague of frequent occurrence. Extensive health measures were introduced to combat these diseases, the success of the measures being reflected in a subsequent steady rise in population.
In the first decade of this century rail connexion between Kowloon and Canton was established, involving the con- struction of a long tunnel under the Kowloon hills, and providing Taipo and other New Territories villages with easy access to Hong Kong. A circular road was constructed linking the chief population areas in the mainland part of the New Territories. Since 1949 the district road system has been considerably improved.
INTERNAL DEVELOPMENT OF THE COLONY
Until Chinese in large numbers started taking western education, there was little Chinese participation in govern- ment, western firms or banks, or in any western institutions. European and Chinese commerce pursued their own courses, largely independent of each other, occasionally linked by the precarious medium of pidgin English.
The special needs of the Chinese population received early consideration. In 1845, a Board of Education was established, and the Registrar-General was made responsible to the Colonial Secretary for all questions relating to the Chinese. Throughout the century this aspect of his duties grew in importance, until in 1913 a separate department had to be created-the Secretariat for Chinese Affairs.